Speaking in Croatia yesterday, the President said he is worried rating agencies and markets are calling the shots rather than our politicians.

He warned: “We need to remember always we do not exist in the abstract, theoretical world of speculative markets and computer algorithms that determine value and apportion wealth.

“We live in the real world of flesh and blood people, with real needs and real contributions to make.

“The union, after all, draws its legitimacy from the support of its people.”

President Higgins said accountability, racism, social cohesion and disharmony were all consequences of the crash – which the EU cannot afford to ignore.

He added: “We have a duty to confront them if we are to stay true to the values on which the unity of Europe has been built.

“We have to achieve a discourse that puts the values of the union, its cohesive ambition, at the top of our mutual agenda.”

The President repeated his call for Europe to stand by its people.

He said: “We need a Europe that, in responding to economic challenges, is conscious of the social consequences of its actions.

“We need a Europe that shows solidarity with the most vulnerable among us – that throws real energy and determination behind efforts to create sustainable growth and jobs so vital to their well-being.” President Higgins said the unemployment crisis has reached alarming levels and described it as the biggest challenge facing governments.

He added: “The blight of unemployment, particularly youth unemployment which is at alarming levels in some member states, is the greatest challenge and carries a danger of delegitimising democratic institutions.

“Despite the economic challenges we as member states face, we must reaffirm the generous idealism that lies at the heart of the collective European vision, placing ourselves at the service of our citizens and those who strive for peace, justice and human rights throughout the world.”